It is possible for the intellectual property rights to be invested in the company without being evaluated. Businesses can choose to share their IP with partners or investors without going through a professional IP appraisal. This can happen in the following situations:
Negotiate an agreement:The parties can stipulate the conditions for the ownership of the IP in the cooperation agreement without the need for a professional IP valuation. This usually requires the negotiating parties to reach a consensus on matters such as the value of the IP, the distribution of shares, etc.
Based on mutual trust:If there is a high level of trust between the partner or investor and the business, both parties may agree not to conduct a formal IP valuation and instead rely on mutual trust and negotiation to determine the terms of the shareholding.
Although IP valuation may be omitted in some cases, it is important to note that a professional IP valuation can often help determine the actual value of an IP property, reduce potential disputes, and ensure that parties are treated fairly in the transaction. Assessments can also provide transparency, providing businesses and investors with a clear understanding of the potential risks and opportunities of intellectual property.
When deciding whether to omit an IP assessment, the parties involved should weigh the risks and benefits and ensure that the IP transaction is managed wisely. In the case of important IP assets, it is advisable to conduct a professional appraisal to ensure a fair and accurate transaction.